In 2008 Qatar played a leading role in brokering political disputes in other countries. In Lebanon, Qatari diplomats succeeded in ending the long-standing stalemate between Lebanon’s Christian-led government and Hezbollah, the country’s largest and most influential Shiʿite Muslim political party and militia group. In Yemen, where diplomatic efforts were ongoing, Qatar sought a cease-fire between an armed insurgency group in the northern part of the country and the government in Sanaa. The parties to the disputes in each of these cases acknowledged Qatar’s goodwill, independence, and genuinely neutral stance as well as its willingness to extend financial assistance in implementing any agreement reached. Elsewhere, Qatar’s quests for conflict resolution in the war-ravaged Darfur region of The Sudan, on the one hand, and between Eritrea and Ethiopia over a major boundary dispute, on the other, proved as elusive as had numerous efforts made by others.

A man inspects a golden vase during the opening day of the new Museum of Islamic Art in Doha, …

Fadi Al-Assaad—Reuters/Landov

Qatar’s economy, which already boasted one of the world’s highest per capita incomes, continued to soar as a result of increased hydrocarbon production and heightened revenues from energy exports. The country remained the world’s largest producer of gas-to-liquids fuels and increasingly invested substantial surplus revenues in foreign financial institutions. In addition, in its annual Corruption Perceptions Index, the Berlin-based nongovernmental organization Transparency International ranked Qatar as the least-corrupt country in the Middle East.

Qatar’s rapid economic expansion was not without its downsides. Of particular concern was a dramatic rise in inflation resulting from a combination of factors. Among the most prominent were a pronounced shortage of housing, significantly higher costs for imported skilled labour needed for new hydrocarbon and infrastructure projects, and the scarcity of construction materials, which contributed to the doubling of costs for some major development ventures. Planning authorities moved rapidly to introduce measures aimed at stemming the inflationary trends.

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